Visteon net income down, revenue up in first quarter

Auto supplier Visteon Corp. reported positive but reduced net income for first quarter of the year.

The Van Buren Township-based company today reported net income of $19 million, or 38 cents per share, on revenue of $1.98 billion for the quarter that ended March 31. The same quarter a year earlier, Visteon reported net income of $69 million, or $1.33 a share, on revenue of $1.86 billion.

The results a year earlier included a $54 million tax benefit.

The climate business for Visteon (NYSE: VC) dominated its earnings with $1.3 billion in sales during the quarter, a $40 million increase over the same quarter in 2013.

Sales continue to be heavily set in Asia, which account for 49 percent of its quarterly revenue. Europe represented 31 percent; North America 17 percent, and South America 3 percent.

Earlier this week, Visteon signed an agreement for an affiliate of Cerberus Capital Management LP to acquire its interiors business. Under the deal, Cerberus assumes $20 million of pension liabilities and Visteon will pay Cerberus $95 million to take the unprofitable business.

In January, Visteon announced an agreement to purchase Johnson Controls Inc.’s Plymouth-based electronics business for $265 million. That deal is expected to close in the second quarter of this year.

Visteon shares were up more than 2 percent in early afternoon trading to $91.36 and up nearly 12 percent for the year.